Personal care and homecare market Germany: exports down sharply
Beauty and homecare products where in demand in the first half of 2020. Hand washing as one of the key hygiene measures in the Corona crisis led to significant sales increases for soaps and syndets. Make-up, lipstick & co. and fragrances were less in demand. The call to “Stay at Home”, increased home office and short-time working as well as closed canteens, dining halls and restaurants led to increased sales of detergents and dishwashing products for private consumption. Demand for surface cleaners also increased. Overall, domestic sales in the first half of 2020 grew by 3.9 percent to 8.1 billion euros compared to the same period of the previous year. Business is heavily burdened by the current difficult situation in the export sector. Foreign trade is reporting declining sales in key product categories; exports are declining by a total of 18 % to 4.1 billion euros. The bottom line is that the industry is still in the red.
Buyers spend 50 € on detergents and cleaning agents
The German Cosmetic, Toiletry, Perfumery and Detergent Association (IKW) estimates that sales of beauty and homecare products in Germany in the first six months of the year totalled 8.1 billion euros. This is 3.9 % more than in the same period last year. According to this, the market for beauty care products grew by just under one per cent to 5.5 billion euros from January to June. In the same period, people in Germany bought homecare products worth 2.6 billion euros – an increase of 12 percent. Consumers in Germany continued to spend an average of 84 € on good looks and personal hygiene. They made particularly frequent use of soaps and syndets, whose sales almost doubled with an increase of 86.4 %. Oral hygiene increased by 5 %. Sales were down in the decorative cosmetics division (-13.8 %) and in the Fragrances division (- 24.8 %). In contrast, buyer spending on detergents and cleaning agents rose by 12 % to 50 euros. Among these products, surface cleaners (+ 35.5 %), dishwashing detergents (+ 16.5 %) and heavy-duty and general-purpose detergents (+ 7.5 %) are among the winners.
Minus 18% export sales
Exports fell by 18 % to €4.1 billion, with the value of exported beauty care products falling by 12 %, while homecare remained almost at the same level as in the same period of the previous year at minus 0.8 %. An overall analysis of domestic and export sales shows a 6.2 %t decline to 12.2 billion euros for the IKW companies compared to the first half of the previous year.
IKW managing director Thomas Keiser: “Especially in the crisis, beauty and homecare products prove to be reliable everyday helpers. Our member companies continue to do everything in their power to ensure a continuous supply of soap, cleaning agents and disinfectants, among other things, during the crisis.”